As any boxing fan will tell you, in his prime, Mike Tyson was a force of nature—one of the most ferocious and dominant heavyweights in history. But behind the knockouts and intimidation was a foundation of world-class training and discipline. That’s what made him great.
I recently came across an interview where Tyson gave his definition of discipline:
“Discipline is doing what you hate to do, but doing it like you love it.”
What does discipline look like for traders?
Most traders think they’re disciplined. They’re not. They go through the motions. They cut some losses, they sit out once in a while, and they think that’s enough. But real discipline isn’t just following a checklist—it’s doing the uncomfortable, boring, frustrating things consistently and doing them well.
Here are four areas where Tyson’s version of discipline applies directly to trading. If you’re serious about improving, these are non-negotiable.
Cutting Losses
Yes, this one’s obvious. But most traders still don’t do it properly.
When I started my career at a Japanese investment bank during the Nikkei crash of the early '90s, I saw a lot of so-called professionals who simply couldn’t cut losing trades. They made excuses, waited for rebounds, doubled down. None of them were still trading professionally 5 years later.
I did the opposite. I made it my mission to be the best at cutting losses quickly and without hesitation. That one skill put me ahead of almost everyone else on the desk. If there’s one area where you want to be elite, it’s here.
Be ruthless with your losses.
Re-entering Trades
This is where a lot of retail traders fall apart. They exit a trade, then the market shifts back in their favour—but they’re stuck obsessing over their last decision. “I shouldn’t have exited,” they tell themselves. So they miss the next move entirely.
Stop whining about the past.
You exited? Fine. Now get your head back in the game and ask: Is it a valid setup now?
If it is, re-enter. And do it without ego or hesitation. Traders who are good at re-entering are able to adapt and stay in sync with the market, not their emotions.
Reversing Trades
Here’s a real test of character. You enter a trade, and the market tells you— loud and clear —that you’re wrong. The undisciplined trader freezes. Or worse, they double down, hoping to be “right” eventually.
But the elite trader? They flip.
Yes, sometimes an exit is all you need. But sometimes, the right move is to reverse your position. I’ve seen this over and over: traders who are good at reversing when conditions change are consistently among the best performers.
When I review statistics for my Norden Method students, there’s a clear pattern:
Traders who reverse more than they double-up are usually more profitable and more resilient.
If you can’t reverse because you’re clinging to your ego, that’s not discipline—that’s denial.
Staying Out
This one’s rarely talked about. And yet, it’s crucial.
There will always be times when market conditions don’t suit your strategy. Can you stay out? Or are you one of those traders who has to trade—scrolling through charts, forcing setups, telling yourself, “There’s always an opportunity”?
In reality, that’s just a lack of discipline.
I design strategies for my hedge funds that include periods of no trading. Intentional inaction is part of the edge. Knowing when not to trade is a skill most traders overlook.
If you aim to become one of the best at staying out when conditions don’t suit, your P&L will improve significantly. But you will need to understand your trading technique in great detail to know when to trade and when not to.
If you don’t understand when conditions are against you—or worse, you know but still trade—then you’re just gambling with conviction.
The Bottom Line
Good discipline isn’t a vague concept. It’s doing the hard stuff well—cutting losses, re-entering, reversing, and staying out when you need to.
Anyone can stick to a plan when it’s easy. But the real pros show up when it’s hard, uncomfortable, and tedious. Just like Tyson in training. That’s where the edge is. That’s where traders are made—or broken.
In the Norden Method community, we talk a lot about discipline. And I’ve built specific techniques to help traders improve it—because discipline is personal. What works for one trader might not for another. That’s why I analyse students’ trades, their stats, even their behaviour on video. And often, what I’m really analysing is discipline.
For many, it’s the line between long-term success and inevitable failure.
Don’t just go through the motions in the situations I have outlined in this post. Aim to be elite at mastering them. Enjoy being good at them just as much as you enjoy a profitable trade. If you can do that you are well on your way to becoming a successful trader.
To learn more about how the Norden Method helps traders build real discipline, visit nordenmethod.com
Keep Grinding
Gary
Thanks, Gary! This is ALWAYS the Lesson One for all traders!